The buyer might want to go even further and work out the fastest way of getting his load to the other side of the world.

A set of virtual trading places is starting to pull a luddite chemical sector into cyberspace.

"But we're not there yet, it's a very conservative sector," says Willem Jan Schutte, the 24-year-old Dutch creator of the first online market linking polymers, chemicals and cargo.

Schutte's first job was trading plastics. Now, three years later, he runs a company -- B&H Holding -- that targets the entire chemical market via the Internet.

"A few years ago I saw things were changing in the chemical business. Why did I have to look at the yellow pages to find a contact and offer my products? Why not bring the whole industry together on one screen?" Schutte says.

"And that is how the polymer market came into being."

Schutte says his information and trading system is unique. His `1st Polymer Market', created in June last year, offers trade in raw materials, real-time pricing courtesy of a third party and product information.

"It took a lot of time to figure it all out. We changed the screen about five times, adding relevant information bit by bit," says Schutte.

A separate chemicals market offers similar services in products like fibres, agricultural chemicals, solvents, olefins and pharmaceuticals. The newly launched CargoFinder site brings together transport users and suppliers by air, land or sea.

"The site originated from the idea that if someone buys something in Hong Kong and wants to have it in Antwerp, he will want to know the transportation cost. That means calling round the world for the best price, which takes time. And by the time he has his quotation, the prices have altered," says Schutte.

The separate sites run with a database showing the latest 10 offers and inquiries added by subscribers. It is updated by the minute and a team checks the sites for false information.

Annual membership costs run from $500 to nearly $7,000.

"The most expensive membership offers additional services, such as the latest news on plant shutdowns," Schutte says.

A joint venture with McGraw-Hill provides the polymer and chemical sites with Financial information. On the polymer site, an alliance with Modern Plastics magazine offers company and sector news for buyers.

"They are our most important target group because once you have the (buyers) on your system, the producers will have to follow," says Schutte.

Schutte believes producers are reluctant to see online trading systems emerge because of fears they will undermine market position. Despite producers' reservations, the polymer site has 750 users and the chemicals site has 1,100.

Emerging Markets

Firms within emerging markets are the most eager to use the virtual trading places, Schutte says.

"They find the system interesting because it gives them access to Western information. If you look at the use of the Internet in Russia and the Czech Republic, it's incredible...as if a new world opens for them."

Chemical firms in the Middle East are also eager users, he says.

The Dutch chemical industry is far from convinced.

Royal Dutch Shell has not even heard of the sites. Akzo Nobel says it does not use the system because it does not add any value. DSM is too occupied with the development of its own web site.

"For now we are concentrating on our own site," says Arthur Spierts, chairman of DSM's Internet steering group.

Euro And Millennium

Deep-rooted conservatism is not the only reason why chemical firms have been slow to embrace the Internet, Schutte says.

"An important reason for companies putting off Internet trade to a later date is that they have their hands full with the euro and the millennium," he says.

Another explanation is that a virtual marketplace rubs out the need for administrative departments, traders and other intermediaries, he adds.

"Traders think they are irreplaceable because they have personal relations with clients. But they do not realise that if it saves a lot of money, a client is not interested in them anymore," he says.

Schutte is sure of a breakthrough in virtual trade in the chemicals sector sooner or later.

"There's a lot of business involved and there are a lot of advantages," he says.

That may explain why Schutte plans to apply for a bourse listing for his company within the next few years.